Business
Melcor Developments Ltd., (TSX:MRD) Releases First Quarter Results
EDMONTON, May 7 /CNW/ - Melcor Developments Ltd., an Alberta based real estate development compan...
About this update from Melcor Developments Ltd.
[{"type":"text","content":"\n\n\n\nEDMONTON, May 7 /CNW/ - Melcor Developments Ltd., an Alberta based real\nestate development company recorded net earnings of $183,000 or $0.01 per\nshare (basic) on revenue of $16,083,000 for the three months ended March 31,\n2009 compared with net earnings of $4,373,000 or $0.14 per share (basic) on\nrevenue of $20,932,000 for the same period in 2008.\n\n\nThe Company has declared a semi-annual dividend of $0.10 per share,\npayable on June 30, 2009 to shareholders of record on June 16, 2009. This\ncompares to a semi-annual dividend of $0.25 per share paid on June 30, 2008.\n\n\nThe first quarter earnings and revenues are lower than during the same\nperiod in 2008 due to a decrease in sales in the Company's Community\nDevelopment Division which has been impacted by the current recession. The\ndivision sold 78 single family lots compared to 53 sold during the same period\nin 2008, but did not record the sale of any multi-family sites. Divisional\nearnings were impacted by a reduction in the average selling price of single\nfamily lots, a sales promotion which discounted the selling prices of selected\nlots, an impairment provision of $760,000 to account for possible write downs\nof agreements receivable including penalty interest that has been accruing and\na loss of $709,000 due to the abandonment of a land purchase option\narrangement.\n\n\nWhile sales of single family lots were low during the first two months of\n2009, a few communities have experienced stronger sales in March and April\nprimarily in the affordable housing sector. The industry as a whole has seen\nan increase in demand for this product. On February 6, 2009 the City of Regina\nannexed 686 acres of land owned by Melcor. These lands are located in the NE\nquadrant of the City and are mainly planned for industrial development.\n\n\nDevelopment activity in the Property Development Division is still good\nwith all space under construction pre-leased except for 8,500 feet of office\nspace in the Market at Magrath project.\n\n\nThe market for office, commercial and industrial real estate remains\nstrong and our Investment Property Division's results increasingly contribute\nto the Company's earnings. During the quarter, the division purchased a 15,000\nsquare foot development site adjacent to the Company's Royal Bank Building and\nsold a small office building ...